NORTH BERGEN/LYNDHURST, N.J. — The International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX) have reached a tentative agreement on all items for a new six-year Master Contract.
The two sides agreed to continue to operate under the current contract until the union can meet with its full Wage Scale Committee and schedule a ratification vote, and USMX members can ratify the terms of the final contract.
“We are pleased to announce that ILA and USMX have reached a tentative agreement on a new six-year ILA-USMX Master Contract, subject to ratification, thus averting any work stoppage on January 15, 2025,” the ILA and USMA said in a joint statement. “This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf coast ports – making them safer and more eƯicient, and creating the capacity they need to keep our supply chains strong.”
President Biden praised the strike aversion.
“(Thursday’s) tentative agreement between the International Longshoremen’s Association and the United States Maritime Alliance shows that labor and management can come together to benefit workers and their employers,” Biden said.
The National Retail Federation also gave support to the agreement.
“We are pleased to see the ILA and USMX come to a final agreement on a new contract, as U.S. ports on the East and Gulf Coasts play a critical role in the retail supply chain,” the NRF said. “Providing certainty with a new contract and avoiding further disruptions is paramount to ensure retail goods arrive in a timely manner for consumers. The agreement will also pave the way for much-needed modernization efforts, which are essential for future growth at these ports and the overall resiliency of our nation’s supply chain.”
The negotiations between the ILA and the USMX relates to the six-year contract that covered approximately 25,000 dockworkers employed in container and roll-on/roll-off (i.e. automobiles, tractors, and other mobile machinery) operations at ports along the U.S. East Coast and Gulf coasts. The contract expired Sept. 30, 2024, but was extended until Jan. 15. The Shippers Coalition called on both groups to continue to negotiate and reach a fair agreement before the end of the extension.
The USMX represents employers of the East and Gulf Coast longshore industry, which include container ocean carriers, port associations and marine terminal operators.
Since a new contract had not been achieved by the Sept. 30 deadline, the ILA commenced a strike starting on Oct. 1. After three days, the two parties announced on Oct. 3 that the strike would cease due to an agreement on wages. The ILA and USMX agreed to extend the current contract until Jan. 15 in order to allow additional time to negotiate remaining issues – particularly the contentious issue of automation and technology.
A recent report from the NRF and Hackett Associates’ Global Port Tracker highlighted that imports to major U.S. container ports are expected to surge through the spring of 2025 as retailers rush to bring in goods ahead of possible disruptions. This surge, while critical to preventing shortages, is putting additional pressure on an already strained supply chain. As the ongoing labor talks remain deadlocked, the risk of a strike grows, potentially disrupting trade and triggering higher costs for goods, according to the release.
Congress could have provide additional tools to the President or the Department of Transportation to ease the flow of goods and mitigate the impact of a strike. These authorities include allowing a waiver for an increase of gross vehicle weight limits on the Federal Interstate System during a supply chain emergency, such as a port strike. Under the waiver, trucks could be filled to capacity and goods shipped across the country. These tools to mitigate the impact of a port strike or other emergencies would be available if the MOVE Act is passed by Congress and signed into law.
According to a media release, since bulk soybean and grain export facilities in the Gulf, East Coast and Great Lakes have a variety of different arrangements for the workforce that loads ships (own company employees, different labor union, etc.), the negotiations between the ILA and the USMX did not present the potential to impact the overwhelming majority of soybean and grain exports from the Gulf or East Coast. However, it would have impacted the soybeans, soybean meal and other agricultural products that are exported via container. It also would have had a significant impact on chilled or frozen meat, eggs, etc. that are exported from the U.S. Of course, the U.S. livestock industry cannot be harmed without simultaneously harming soybean and grain farmers.
“This is a win-win agreement that creates ILA jobs, supports American consumers and businesses, and keeps the American economy the key hub of the global marketplace,” the joint statement said. “Details of the new tentative agreement will not be released to allow ILA rank-and-file-members and USMX members to review and approve the final document.”
Dana Guthrie is an award-winning journalist who has been featured in multiple newspapers, books and magazines across the globe. She is currently based in the Atlanta, Georgia, area.
